Hi everyone,
I’ve been reading this sub for a while now, and I see that the recommendation for people who know how to invest their savings is index funds. I currently have a good monthly savings capacity and don’t want to leave my money sitting idle in the bank, as high-yield savings accounts don’t convince me against inflation.
However, before taking the plunge, I have two questions:
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The fear of a sideways or bear market (like Japan): It’s often said that the stock market always goes up in the long run, but I’m worried that what happened in Japan will happen here, where the market stagnated or declined for decades. How is this risk mitigated with index funds? Are they really a safe bet for 20 or 30 years?
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The safekeeping and security of the money: I’m wary of leaving my savings in the hands of an asset manager or platform for such a long time. What guarantees do I have that my money will still be there if the company goes bankrupt or disappears in 25 years? Where would my shares go in that case?
I’d like to better understand why this option is considered better than others and what safety mechanisms exist for small investors who, like me, aren’t financial experts.
Thank you very much in advance!